A six-year project for Little Egypt, Inc results in additional accounts receivable of $150,000,

additional inventory of $50,000, and additional accounts payable of $80,000 today.

What is the
change in the NPV of a project solely due to the additional net working capital (NWC) needs?
Assume a 14% discount rate, and the recovery of net working capital at the end of the project.
A) a decrease of $58,689 B) a decrease of $42,670
C) a decrease of $120,000 D) a decrease of $34,606

B

Business

You might also like to view...

When developing a bad news message regarding organizational news, what should be done to minimize long-term financial implications?

A) Be open and transparent. B) Seek expert advice. C) Use multiple channels to reach affected audiences. D) Look for positive angles. E) Match your approach to the situation.

Business

Based on the strategy-culture matrix, when the need for strategic change is low and the compatibility of change with the existing culture is high, a manager will choose to _____ as the most effective strategy

a. manage the change b. reinforce the culture c. manage around the culture d. change the strategy e. answers a and b

Business